Dynamic International Airways Files for Bankruptcy
Greensboro-based charter air carrier Dynamic International Airways LLC has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in Greensboro, North Carolina.
The company is seeking the bankruptcy court’s protection so it may be given the chance to reorganize its business. The company is embroiled in a number of problems, including various pending litigations, a lack of steady corporate vision, and accounting troubles.
According to the document filed with the bankruptcy court, the air carrier lists assets between $10.0 million and $50.0 million, and liabilities of between $50.0 million and $100.0 million.
The company has managed to find a lender that will loan the company funds to carry on with its operations through the bankruptcy proceedings. The co-owner of the company, Kenneth M. Woolley, will be lending the company $6.0 million during the bankruptcy proceedings.
The lack of corporate direction has been the biggest bane of Dynamic’s existence. The current CEO of Dynamic International Airways, Paul Kraus, says that the company has been facing significant troubles in finding and retaining qualified executives.
According to the document filed with the court, the company has had three chief executive officers (CEOs), three chief financial officers (CFOs), and four chief operating officers (COOs) since 2013.
The high management turnover has led to various accounting problems. In particular, the repeated change in CFOs has caused serious confusion, due to the usage of different accounting systems. According to the CEO, the company has lost a significant amount of cash, as various items were either missed or not properly recorded.
Dynamic’s current management team is working on reorganizing the company so it may be able to begin offering scheduled flights, in addition to the charter flights.
Dynamic international Airways is a privately-owned airline that provides charter and contract air travel services. It is a licensed air carrier certificated by the U.S. Department of Transportation and the U.S. Federal Aviation Administration. The airline has a fleet of six Boeing 767s which operate international flights from and to the United States.
The company is particularly known for its charter flights to China from California and Alaska. The airline also offers charter flights from New York to Guyana and Ecuador.
“Charter Airline Dynamic International Airways Files for Bankruptcy,” The Wall Street Journal, July 19, 2017.
“Dynamic International Airways Files Chapter 11 Petition,” Aviation Tribune, July 20, 2017.